Anchorage Digital: Fed's Proposed Payment Accounts Cannot Replace Traditional Master Accounts

July 30th News, according to The Block, US federally chartered national bank Anchorage Digital stated that the Federal Reserve's proposed payment account cannot replace traditional master accounts. Anchorage, in a comment letter, supported the Federal Reserve's efforts to modernize payment system access but pointed out that the proposed account lacks FedACH access, has overnight balance limits, does not provide intraday liquidity, and does not pay interest on reserves, making it "not a viable alternative to the master account that member national banks have held for over a century." Anchorage is concerned that the lack of FedACH access will require it to continue relying on intermediaries for daily payment settlement and noted that a streamlined master account should include interest on reserves. Last year, Federal Reserve Governor Christopher J. Waller proposed the concept of a "streamlined master account." In May of this year, the Federal Reserve solicited public comments on a new payment account proposal, allowing some crypto companies to access the Federal Reserve's clearing and settlement system, but without intraday credit, the discount window, or balance interest.